Building Japan’s Impact Economy Case Series

Chapter 2: Japan’s Wicked Problems

The concept of “Wicked Problems” has been widely explored by social scientists and business leaders since the 1970s. Academics and design theorists Horst Rittel and Melvin M. Webber use the term to describe complex, unstructured problems that lack clear right or wrong solutions and are constantly evolving. 1 Wicked problems are large, systemic, and difficult to untangle. Many of the world’s most pressing challenges—climate change, poverty, lack of access to proper sanitation or healthcare, failing education systems, and loss of biodiversity—are prime examples. The SDGs epitomize wicked problems and require unique and equally complex systemic approaches to successfully address them. Japan faces several wicked problems that threaten its economic, socio-cultural stability, and the well-being of its citizens. The Impact Economy could help mitigate these challenges by channeling purposeful capital into systemic solutions. To better understand Japan’s situation, the United Nations Development Programme (UNDP) Human Security Framework offers a useful lens. 2 This framework, shown in Figure A, is people-centered and emphasizes the interconnectedness of eight dimensions of what people need to be free of want and need. Security in these dimensions allows people to thrive, not just survive. This systems approach, which is also taught at the Oxford Impact Investing Programme at Saïd Business School, Oxford University, complements SIIF’s place-based systems strategy. It helps investors describe how their investments might help empower individuals and communities to survive and thrive.

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Ten Years in the Making

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